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As per technical article of ACCA, in step disposal we need to add goodwill in closing net assets and then calculate NCI share.
but in OT notes example 3 goodwill is not added in net assets at time of disposal to calculate NCI
can you please explain this.
from my understanding in step acquisition in which entity already has control and acquisition doesn’t effect control we consider it as a treasury transaction and good will is not effected. but in step disposal in which entity retains control why in technical article they are considering goodwill?
There is no consensus on how to measure the change in the NCI n- so I wouldn’t worry about it
All the marker looks at is that you are comparing the consideration with the NCI change
Remember that in SBR you may well end up with different numbers and still get full marks
please correct my understanding
“in OT example its proportionate goodwill method so we don’t consider goodwill”
“in technical article its full goodwill method so we take a share of NCI goodwill”
am I right?
That sounds fine – but, even with full goodwill, there is some inconsistency in practice
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